Official data released during the week shows the number of home loans surged in September, after two straight months of decline, as first home buyers raced to beat the October 1 roll back of the first home owner grant.
But economists are expecting a sharp pull-back in October and November as interest rates rise.
"It does look very much like a last hurrah for first home buyers getting into the market," Nomura Australia chief economists Stephen Roberts said earlier this week.
"I would expect a reasonably sharp decline in October and November."
The Reserve Bank of Australia has lifted the cash rate by 25 basis points at each at its past two monthly board meetings, in November and October, and the rate now sits at 3.5 per cent.
Damian Smith, chief executive of financial comparison website RateCity, said that in reality first home buyers had just three weeks to make a purchase before the grant is scaled back again.
"First home buyers must have their finances formalised before the December 31 deadline and because it can take a month to process a home loan, there is really only three weeks left to secure the boost," he said.
"But our big advice to people is don't rush and make a silly decision now because there's a couple of extra grand on the table.
"These things last 25 years, therefore the costs of getting it wrong last a very long time."